Thursday, October 13, 2011
Harrison judgement “huge blow” for CMCs
The Court of Appeal yesterday upheld the High Court decision in the much documented case of Harrison v Black Horse.
Black Horse lent the Harrisons £60,000 and sold them PPI for £10,200, the commission on which was 87% of the premium. The Harrisons claimed this was unfair.
Greg Standing, a partner in Wragge & Co’s finance litigation team and an expert on defending lenders against such claims said: “In essence the Court of Appeal found that Black Horse met the standard imposed by the FSA through its ICOB rules and that it would be anomalous if it were the case that it was necessary to disclose the commission to comply with the Consumer Credit Act, yet not necessary to comply with ICOB rules.”
The Court of Appeal also said that even though the commission was large there was no basis to distinguish PPI from the sale of other products where sellers have no obligation to warn that the products are expensive.
Standing continued: “This is a very positive decision for all lenders who will need to review strategy for dealing with alleged PPI mis-selling cases. Obviously it’s a huge blow for CMCs.
DATED: 13.10.11
FEED: MF
Arnold Clark takes on Chrysler and Jeep
Arnold Clark has added the Chrysler and Jeep franchise for the first time and the brands will join its Fiat dealerships in Ashton, Ayr (pictured with Mark Crockart, general manager) and Elgin.
Chrysler and Jeep are now part of the Fiat Group after it rescused the brands from bankruptcy in 2009.
Chairman Sir Arnold Clark said: "This is a new and exciting opportunity for the Arnold Clark Group and we look forward to meeting and welcoming both new and existing customers to our dealerships in Ashton, Ayr and Elgin, where we continue to offer genuine value for money and high levels of customer satisfaction traditionally associated with Arnold Clark."
The expansion into new brands follows the group’s better than expected results from last year. Pre-tax profits were down by 31.7% from £73.9 million to £50.5m in 2010. However, turnover was up by 6.1% to £2.271 billion, net assets were up 8% to £447m and new car unit sales were up 3% to 77,626 units.
The group continues to be acquisitive and Sir Arnold said the business will "take advantage of any suitable expansion opportunities that may arise".
DATED: 13.10.11
FEED: AM
Motor finance market share hits new high
Motor finance achieved its highest recorded share of the private new car sales market for four years in August.
In the last 12 months, 57.9% of people buying new cars used forecourt finance, according to the latest figures from the Finance & Leasing Association (FLA), the trade body for the motor finance industry.
The number of new cars bought on finance was up by 17% in August, and the number of used cars was up by 8%, compared with August last year.
In the new car market the recent sales trends continued. Leasing was up by 38% and personal contract purchase (PCP) by 24% compared with the year before. Use of both forms of credit rose in the used car market.
Paul Harrison, head of motor finance at the FLA, said: “These figures show that forecourt finance continues to be extremely popular. Motor finance has an edge over other purchasing options in current economic conditions as customers are able to negotiate a finance package to suit their budget, whether it is a leasing, PCP, hire purchase or a loan agreement.”
DATED: 13.10.11
FEED: AM
4x4 prices on the rise as UK braces for winter
Values on used 4x4s are already starting to rise in reaction to reports that the UK will face another harsh winter.
According to BCA September saw the value of four wheel drives begin to climb sharply, with prices now getting close to those seen in January and February this year.
The average value for all 4x4s sold by BCA in September rose to £12,805 from £12,509 in August and £10,381 in July.
September recorded the second highest average 4x4 value so far this year and there is every indication that values will rise further in the colder months ahead.
Tim Naylor from BCA believes anyone in the market for a 4x4 would be wise to buy now, especially as last year’s early snowfall caught out many people.
He said: “For many motorists – particularly those living in rural or remote areas – a 4x4 is becoming a necessity in winter, rather than a luxury.
“Although we had an unusually warm September, prices have already started rising and the first hint of snow and severe winter conditions could see significant demand for all-weather vehicles which will send values sky high.”
Naylor suggested that buyers should look for a high specification vehicle to ensure it retains its value.
Naylor said: “Alloys, leather interior, air-con and sat-nav all add value. Buyers also like ‘rugged’ accessories, such as mounted spotlights and a roof bar, and these accessories can drive prices up too.
“Performance and torque could also be important for future buyers and diesels are generally more popular although petrol does well as long as the mileage isn’t too high.
“But absolutely essential is ensuring the vehicle has a comprehensive up to date service history” concluded Tim Naylor. “It may have been no further off-road than up a suburban kerb, but it could be prudent to walk away if it doesn’t have a full service history.”
DATED: 13.10.11
FEED: AM
